The Arizona Attorney General, Kris Mayes, announced on August 21, 2026, that a two-year investigation found no evidence to support a bribery charge against Governor Katie Hobbs related to allegations involving Sunshine Residential Homes, a state contractor. The investigation examined the company's political contributions to Hobbs's inaugural fund and the Arizona Democratic Party, which coincided with substantial rate increases from the Arizona Department of Child Safety.
Mayes stated that the investigation, which included over one terabyte of data and more than 100,000 documents, did not uncover evidence of the necessary quid pro quo for a bribery charge. The inquiry began in 2024 following a report that questioned the timing of Sunshine's contributions and subsequent state payments to the company.
Sunshine had previously sought a rate increase, which was denied shortly after Hobbs took office, but was later approved in May 2023. Hobbs has denied any wrongdoing and stated she was not involved in the decision-making process regarding the rate increase.
Mayes emphasized that while the absence of evidence for criminal charges exists, there are still concerns about transparency in political contributions from state contractors. She urged the legislature and the governor to consider reforms for greater transparency in this area. A separate investigation by the Maricopa County Attorney and the state auditor general is still ongoing.